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WHAT IS CURRENCY EXCHANGE?

WHAT IS CURRENCY EXCHANGE?

forex, fx, currency, economy, finance

forex, fx, currency, economy, finance, investments
Forex is an abbreviation for general use for “change” or “currency exchange” and is often used todescribe the trade in Forex by investors and speculators. For example, imagine a situation in which  we hope the dollar will weaken relative to the euro. The trader of forex in this situation will selldollars and buy euros. If the euro strengthens, purchasing power will increase to buy dollars. Thetrader now can return to buy more dollars that what he or she had begun with, obtaining a benefit.
This is similar trade. An agent is going to buy a stock if you think that the price will increase in thefuture. Later, it will sell a share if it thinks that its price will fall in the future. Likewise, a forex traderwill buy a currency pair if he expects that the rate of change to increase in the future. Also he will sella currency pair if he expects the exchange rate to fall in the future.

WHAT IS FOREIGN EXCHANGE?

The Forex market is a global market and decentralized that determines the relative values ofdifferent currencies. Unlike other markets, there is no centralized depositor Exchange wheretransactions are conducted by traders.
On the other hand, these operations are conducted by various traders of the market in severalplaces. It is rare that two coins are the same value and it’s also rare to two currencies to maintain thesame relative value for more than one short period of time. In Forexexchange between two pairs ofcurrency rate of constantly changing

ADVANTAGES

One great advantage of operating Forex is that you can buy or sell currencies at any time, subject toavailability of liquidity. So if you believe that the eurozone is going to separate, you can sell euros andbuy dollars.

If you think that the gold price will go up, you can buy the Australian dollar and sell U.S dollars.

forex, fx, currency, economy, finance, investments

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